Cultural Differences between China and the UK - Salfordia Construction Company - Case Study Example

Download file to see previous pages The paper 'Cultural Differences between China and the UK - Salfordia Construction Company " is a good example of a marketing case study. Organizational culture enables the managers and employees of any given firm to understand the problems and challenges facing it, find solutions to the same, and implement them in a manner that promotes achievement not only for the benefit of the firm but for the benefit of the employees too (Huff & Kelley, 2003, p. 81). Companies that invest in countries other than where they were first established tend to drag their cultural baggage along with them into their new venture markets (Hempel, 2001, p. 203). This is especially true because firms consciously or unconsciously derive business values from their founders (Asma, 1996). As Salfordia Company enters the Chinese market, for example, it is likely to tag along with the techniques, systems, and procedures that it uses in its traditional UK market.

Being a family company, Salfordia Construction Company has adopted a conservative culture, which is perhaps drawn from its founder. Consequently, conservative culture affects how the firm conducts its businesses. Dyer and Handler (1994, p. 72) define family businesses as commerce entities whose early experiences originated from a family setting; whose start-up activities involved members of a family; whose entrepreneurial firm employs family members; or whose ownership or management succession involves members of one family. In such a scenario, the entrepreneurial dynamics of the business entity intersect with family interests, and like Kelly, Atthanassiou, and Crittenden (2001) argue, the management of such a business must always balance the business interests against those of the family members.

The effects of family ownership notwithstanding however, the company has a team of specialist installers who have acquired experience working for the company in multiple projects. To cater for increased labor requirements, the company has a short-term strategy of employing supportive casual and unskilled labor on a needs basis. In order to remain profitable and compete in the tough construction environment, Salfordia Construction Company is now considering venturing outside its traditional UK market by going to China. The company hopes that by venturing into China, it will not only acquire new market share, but it will also improve its business survival chances as well as opportunities for making profits. Looking at the company’s turnover and profit/loss accounts since 2008, it is obvious that its fortunes have been dwindling over the years and it is therefore justified in setting its sight to new markets.

...Download file to see next pages Read More